Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January February March 13,140 12,300 15,075 The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,720 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. Patrick Inc. Overhead Budget For the Coming First Quarter Overhead: Total direct labor hrs Variable overhead rate Total variable overhead Add: Fixed overhead Total overhead January February March Total
Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January February March 13,140 12,300 15,075 The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,720 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. Patrick Inc. Overhead Budget For the Coming First Quarter Overhead: Total direct labor hrs Variable overhead rate Total variable overhead Add: Fixed overhead Total overhead January February March Total
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 21E: Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is...
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are:
January
February
March
13,140
12,300
15,075
The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,720 per month.
Required:
Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your
answer. Round total variable overhead and total overhead to the nearest dollar.
Patrick Inc.
Overhead Budget
For the Coming First Quarter
Overhead:
Total direct labor hrs.
Variable overhead rate
Total variable overhead
Add: Fixed overhead
Total overhead
January February March
Total
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